Irish boxing chiefs have been given two months to come up with a governance plan in the wake of the massive vote against change from clubs.
But Sport Ireland have confirmed that, with immediate effect, a 15% reduction in the IABA’s Core funding for 2022 will occur following Sunday's comprehensive result, along with other financial penalties.
More will follow unless the IABA can get its membership to row in behind change.
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Prominent IABA board members issued a plea for unity in backing the suite of over 60 changes proposed at Sunday's EGM as recommended by an independent governance review.
However, of the 132 delegates who attended from Ireland's 338 affiliated boxing clubs, only 25 of the 76 votes needed for change were received with 80 against.
The sanctions will not have any impact on direct athlete funding delivered through Sport Ireland’s international carding scheme.
"There is a consensus on the need for reform and that must be the immediate focus of everyone in the IABA now," said Dr Una Mayo, Sport Ireland's CEO.
“Sport Ireland and the Minister (Jack Chambers) have outlined to the board and executive of the IABA that it will now be required to present to Sport Ireland a comprehensive plan for real and meaningful governance reform within two months.
"Failing this, further sanctions will be implemented. The two-month window is an opportunity for the IABA to recast its own future.
"A lot of the groundwork has been done and it is up to the leadership now in place to see if it can unify the sport and move beyond the current conflicts.
“It is important to stress that this is not solely about financial implications.
"The area of most concern here is the future of the sport of boxing in Ireland."
The EGM also saw the rejection of a proposal to permit AGMs and EGMs to be held in Northern Ireland in the future.
Dr May added: “Sport Ireland is also concerned about the negative vote in relation to the technical issue on IABA meetings in Northern Ireland.
"It is our view that this sends out a very negative signal about unity, particularly in a sport which has long and positive history as an all-island body.”
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